1. Regulatory Updates
1.1. India
Reserve Bank of India (RBI)
1.1.1. RBI allows Indo-Maldives trade in INR and MVR
The Reserve Bank of India (“RBI”) has permitted bilateral trade transactions between India and Maldives to be settled in Indian Rupee (“INR”) and Maldivian Rufiyaa (“MVR”), in addition to the Asian Clearing Union mechanism. This follows the signing of an MoU between RBI and the Maldives Monetary Authority in November 2024. The move aims to enhance trade cooperation and will take immediate effect. RBI
1.1.2. RBI appoints Indranil Bhattacharyya as ED
RBI has appointed Indranil Bhattacharyya as Executive Director (“ED”) effective March 19, 2025. With nearly three decades of experience in monetary policy, fiscal policy, banking, and international economic relations, Bhattacharyya previously served as Adviser in the Monetary Policy Department. As ED, he will oversee the Department of Economic and Policy Research. He holds a postgraduate degree in Economics from Jawaharlal Nehru University. RBI
1.1.3. RBI issues guidelines for government account closing for FY 2024-25
RBI has issued special measures for agency banks to ensure all government transactions for the Financial Year 2024-25 are accounted for within the same year. Banks must keep branches handling government receipts and payments open until normal working hours on March 31, 2025. A special clearing for government cheques will also be conducted. Additionally, reporting windows for Central and State Government transactions will remain open until noon on April 1, 2025. RBI
Securities and Exchange Board of India (SEBI)
1.1.4. SEBI integrates DigiLocker to reduce unclaimed assets
The Security and Exchange Board of India (“SEBI”) has partnered with DigiLocker to minimise unclaimed financial assets by creating a centralised repository for financial information. Through DigiLocker, investors can store documents like mutual funds and demat statements securely. The platform’s nominee feature facilitates easy access for family members after an investor’s demise, streamlining the asset transmission process. By ensuring timely notifications and reducing legal complexities, SEBI aims to enhance transparency and investor protection in the financial ecosystem. SEBI
1.1.5. SEBI extends timeline for industry standards on related party transactions
SEBI has extended the implementation date for the Industry Standards on Minimum Information for Related Party Transactions from April 1, 2025, to July 1, 2025. The extension follows stakeholder feedback seeking additional time for compliance. The Industry Standards Forum (ISF), comprising ASSOCHAM, CII, and FICCI representatives, will incorporate feedback to simplify the standards. Listed entities are advised to stay informed through the SEBI website. SEBI
1.1.9. SEBI launches online filing system for takeover exemption reports
SEBI has introduced an online filing system via the SEBI Intermediary Portal (SI Portal) for submitting reports under Regulation 10(7) of the Takeover Regulations. Initially, the portal will accept reports for exemptions under Regulations 10(1)(a)(i) and 10(1)(a)(ii). During the transition, filings can be made both online and via email. This move aims to enhance convenience and streamline compliance processes. SEBI
1.1.9. Monetary Penalties
RBI imposes monetary penalties on the following financial institutions:
Name of the Financial Institution | Penalty Imposed | Reasons |
INR 1,00,000/- (Indian Rupees One Lakh only) | Contravention/ non-compliance of Section 20 read with Section 56 of the Banking Regulation Act, 1949 | |
INR 5,00,000/- (Indian Rupees Five Lakh only) | Contravention/ non-compliance with specific directions issued by RBI prohibiting acceptance of fresh deposits. | |
INR 1,00,000/- (Indian Rupees One Lakh only) | Contravention/ non-compliance with specific directions issued by RBI prohibiting acceptance of fresh deposits. | |
INR 1,00,000/- (Indian Rupees One Lakh only) | Contravention/ non-compliance of Section 20 read with Section 56 of the Banking Regulation Act, 1949 | |
INR 1,50,000/- (Indian Rupees One Lakh Fifty Thousand only) | Contravention/ non-compliance of Section 26A read with Section 56 of the Banking Regulation Act, 1949. | |
INR 50,000/- (Indian Rupees Fifty Thousand only) | Contravention/ non-compliance with specific directions under the ‘Supervisory Action Framework (SAF)’ | |
INR 3,10,000/- lakh (Indian Rupees Three Lakh Ten Thousand only) | Contravention/ non-compliance with RBI directions on ‘PSL - Targets and Classification’ and contribution to the Micro and Small Enterprises (“MSE”) Refinance Fund. | |
INR 5,00,000/- lakh (Indian Rupees Five Lakh only) | Contravention/ non-compliance with RBI directions on ‘PSL - Targets and Classification’ and contribution to the MSE Refinance Fund. | |
INR 6,20,000 (Indian Rupees Six Lakh Twenty Thousand only) | Contravention/ non-compliance with RBI directions on ‘PSL - Targets and Classification’ and contribution to the MSE Refinance Fund | |
INR 1,20,000/- lakh (Indian Rupees One Lakh Twenty Thousand only) | Contravention/ non-compliance with RBI directions on ‘PSL - Targets and Classification’ and contribution to the MSE Refinance Fund. | |
INR 36,30,000/- (Indian Rupees Thirty-Six Lakhs Thirty Thousand only) | For not undertaking due diligence while processing the inward remittances from a Foreign Currency Account opened by a constituent, resulting in contravention of Section 10 (4) of FEMA, 1999. | |
INR 36,28,000/- (Indian Rupees Thirty-Six Lakhs Twenty-Eight Thousand only) | Contravention/ non-compliance of the directions issued by the Reserve Bank of India related to reporting of transactions undertaken under the Liberalized Remittance Scheme. |
1.2. Vietnam
1.2.1. Vietnam focuses on science, innovation, and digital transformation for sustainable growth
Prime Minister Pham Minh Chinh outlined Vietnam’s 2024 Resolution No. 57-NQ/TW, emphasising breakthroughs in science, technology, and digital transformation as pillars for achieving strategic development goals by 2045. A unified Government Steering Committee was established to enhance reforms and digital advancements. State Bank of Vietnam
1.3. Philippines
1.3.1. Overseas Filipino remittances rise by 2.9 per cent in January 2025
Personal remittances from Overseas Filipinos (OFs) climbed to USD 3.24 billion (United States Dollar Three Billion Two Hundred Forty Million only) in January 2025, marking a 2.9 per cent (two point nine per cent) increase compared to January 2024. Cash remittances through banks reached USD 2.92 billion (United States Dollar Two Billion Nine Hundred Twenty Million only), driven by contributions from land-based and sea-based workers. Bangko Sentral ng Pilipinas
1.3.2. Bacnotan launches Paleng-QR Ph Plus for safer e-payments
Bacnotan Public Market hosted the launch of the Paleng-QR Ph Plus program on March 8, 2025, led by Mayor Divina C. Fontanilla and BSPs La Union Manager Melody P. Hermosura. The program promotes the use of QR Ph, the national QR code standard, for convenient and secure e-payments in public markets, transportation, and businesses. Bangko Sentral ng Pilipinas
2. Trends
2.1. Pine Labs plans USD 1 billion India IPO in 2025
Indian fintech Pine Labs is preparing for an India Initial Public Offering (“IPO”) in the second half of 2025, aiming to raise around USD 1 billion (United States Dollar One Billion only). Despite recent market volatility, CEO Amrish Rau remains committed to the listing. Valued at USD 5 Billion (United States Dollar Five Billion only) in 2022, Pine Labs offers payment solutions and tech services to banks and fintech firms. The IPO would be India’s second-largest fintech listing after Paytm. Fintech News
2.2. NPCI to phase out UPI ‘collect call’ payments
National Payments Corporation of India (“NPCI”) plans to discontinue ‘collect call’ Unified Payments Interface (“UPI“) transactions for merchants to reduce fraud risks. This will shift focus to ‘push’ transactions where customers initiate payments via Quick Response (“QR”) codes. Additionally, banks are advocating for the return of the Merchant Discount Rate (MDR) on UPI and RuPay debit card transactions. While this may affect small businesses, it could reshape the digital payments landscape in India. Business Standard
3. Sector Overview
3.1. RBI governor meets UCB leaders to discuss sector growth
RBI Governor met Chairmen and CEOs of select Urban Cooperative Banks (“UCBs”) on March 19, 2025, alongside Deputy Governors and Executive Directors. Emphasising UCBs' role in financial inclusion, he stressed operational resilience, cyber risk management, and customer service. RBI assured continued support while highlighting depositor trust as paramount. RBI
3.2. UPI expands in Singapore with HitPay partnership
NPCI International has partnered with Singapore-based HitPay to expand UPI acceptance to over 12,000 (twelve thousand) merchants. This move follows the UPI-Pay Now linkage, allowing seamless remittances between India and Singapore. The collaboration offers Indian travellers a reliable and cost-effective payment option while enhancing the global reach of India's real-time payments system. NPCI’s international push continues to strengthen cross-border digital payments. Business Standard
3.3. Income Tax Bill 2025- public consultation begins
The Central Board of Direct Taxes (CBDT) has launched a utility on the e-filing portal, inviting taxpayers and stakeholders to submit suggestions on the Income Tax Bill, 2025. The Bill aims to modernise India’s taxation system, aligning it with global best practices. Currently under review by a select committee, the government’s consultative approach ensures transparency and inclusivity, reflecting its commitment to an efficient and equitable tax regime. The Economic Times
3.4. IndiaAI mission surges with 67 Indigenous AI Model proposals
The Government of India’s IndiaAI Mission has received 67 (sixty-seven) proposals from startups and researchers to develop indigenous AI models. With a focus on Large Language Models (LLMs), Multimodal Models (LMMs), and Sector-Specific Models (SLMs) in healthcare, education, and finance, the initiative aims to position India as a global AI leader. The government emphasises AI for All while ensuring safe and trusted AI deployment. PIB
3.5. RBI restores CoR for Hindon Mercantile
RBI has restored the Certificate of Registration (“CoR”) of Hindon Mercantile Private Limited, following orders from the Appellate Authority/Courts. Located in New Delhi, the company’s CoR (No. B-14.03646) was reissued on March 11, 2025. The company must comply with the RBI Act, 1934, and all applicable guidelines, including reporting requirements. RBI
4. Business Updates
4.1 Govt launches incentive scheme for small UPI payments
The government has introduced INR 1,500 crore (Indian Rupees Fifteen Hundred Crore only) incentive scheme to promote low-value BHIM-UPI transactions (P2M) under INR 2,000 (Indian Rupees Two Thousand only) for small merchants. Acquiring banks will receive 0.15 per cent (zero point one five per cent) of the transaction value, shared with other stakeholders. This move aims to reduce merchant fees and encourage digital payments. Banks maintaining high system uptime and low technical declines will receive additional incentives. The initiative is expected to drive financial inclusion and expand digital payment adoption. MSN
4.2. UIDAI partners with Sarvam AI for AI-powered AADHAAR services
Unique Identification Authority of India (“UIDAI”) has partnered with Bengaluru-based Sarvam Artificial Intelligence (“AI”) to enhance Aadhaar services using AI. The collaboration will introduce voice-based interactions for real-time user feedback, fraud detection, and multilingual support in 10 (ten) languages. Sarvam AI's GenAI solution will operate on UIDAI's secure infrastructure, ensuring data privacy. The one-year agreement, extendable by another year, reflects UIDAI’s commitment to technological innovation and user-centric service delivery. PIB
4.3. Paytm Money secures SEBI nod for investment advisory
Paytm Money, a subsidiary of One 97 Communications Limited, has obtained SEBI registration as an investment adviser and research analyst. This certification allows the platform to offer investment insights, research reports, and data-driven analysis. The services will be integrated into the Paytm Money app, aiming to assist investors in making informed financial decisions across India. Business Standard
4.4. Infibeam Avenues partners with IISc to combat deepfake scams
Infibeam Avenues has signed an MoU with the Indian Institute of Sciences (“IISc”) to develop real-time deepfake detection systems. This collaboration aims to bolster digital security for governments and corporations against AI-generated scams. With deepfake threats on the rise, including a USD 25 Million (United States Dollar Twenty-Five Million only) fraud in Hong Kong last year, the initiative focuses on restoring digital trust and preventing misuse of AI technology. Business Standard
Disclaimer
The note is prepared for knowledge dissemination and does not constitute legal, financial or commercial advice. AK & Partners or its associates are not responsible for any action taken based on its contents.
For further queries or details, you may contact:
Mr Anuroop Omkar
Partner, AK & Partners
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